|
T-Online IPO snapped up
|
 |
April 10, 2000: 6:25 a.m. ET
Institutional investors jump on Europe's biggest Net issue
|
LONDON (CNNfn) - German Internet service provider T-Online's initial public offering is already substantially oversubscribed a few days before the closing date for applications, according to published reports Monday.
Institutional investors entered big orders for shares in Europe's biggest Internet flotation at the lower-than-expected price range for the share offering of  26 to 32 ($24.90 to $30.63), German business daily Handelsblatt, said citing unidentified sources. Over the weekend, the Frankfurter Allgemeine Zeitung said the stock would be priced at the top end of the offer price range after the issue was 6 to 7 times oversubscribed.
Analysts had expected Deutsche Telekom, T-Online's parent, to price the shares as high as 50. The company's directors put a more conservative price on the sale after a string of IPOs of European Net firms that swiftly fell below their offer price, amid a spate of investor jitters about share valuations in the technology sector.
 Deutsche Telekom is selling 100 million shares in T-Online, representing 9 percent of the Net company's equity, in a sale that values the entire company at up to 35 billion. Telekom aims to raise as much as 3.2 billion from the initial offering.
The application period for the offer ends on April 12 for retail investors and on April 14 for institutions. Trading in the shares begins on April 17 on the Neuer Markt, a market for high-growth and technology stocks in Frankfurt.
Shares in Deutsche Telekom surged 6 percent to 83.55 on reports of strong demand for T-Online. 
--from staff and wire reports
|
|
|
|
|
|
Deutsche Telekom
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
